TIPS: How can I save money with high gas prices?

Written by Reynaldo — October 5, 2022
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Why this is important

California is getting another reminder of the volatility of its energy supply as shutdowns at several oil refineries have sent gas prices spiking. Five or six plants are simultaneously dealing with maintenance-related shutdowns, leaving limited supplies of the special blend of gasoline mandated by California to reduce pollution.

While Gov. Gavin Newsom responded last week to the drastic increases in fuel costs by jump-starting the state’s shift to cheaper, winter-blend gasoline, energy experts say it could still be weeks until drivers start to feel some real relief at the pump.

 

In the past few weeks, Americans have experienced higher prices when filling up their tank at the gas station. Gas prices hit a record average high of $4.52 per gallon on May 15, according to AAA. In states like California, the average price of a gallon of gas is even higher, at more than $6.

So why are gas prices skyrocketing? There are two important factors causing the spike in gas prices: The war in Ukraine and the decline in oil production during the pandemic.

With gas prices currently at a peak, consumers may be feeling the impact of gas prices on their wallet. Below, Select looks at few ways that consumers can save money on gas.

 

HOW TO SAVE MONEY ON GAS

 -Use an app to find the cheapest gas and discounts

Apps like Gas Buddy and AAA (both are available in the Apple App Store and the Google Play Store) can help you hunt down the cheapest gas prices near you.

With Gas Buddy, the app uses your location and shows you the price of a gallon of gas at stations in your vicinity. However, you shouldn’t bother traveling too far for cheaper gas as the cost of driving there could erase any of the money you would be saving.

Gas buddy also offers the Pay with GasBuddy Card, a rewards card that offers cardholders up to $0.25 off per gallon. Pay with GasBuddy is not a credit card, does not require a credit check and is free to join.

Get Upside has an app that will help you find the cheapest gas stations in addition to offering extra discounts on gas. Get Upside is a rebate app, so users fill up their gas tank, paying with their credit or debit card, and then upload the receipt to the app in order to earn cash-back.

-Don’t use premium gas

If you’ve been opting for premium gasoline over regular gas even though your car doesn’t technically need it, you may be needlessly spending extra money. Premium gas has a higher octane level than regular gas.

Your car’s manual should specify whether your car requires premium gas or whether it’s optional. If you’re using lower octane gas on a car that requires premium gas, the car’s engine may function more poorly than if you had used higher octane gas. However, if your car doesn’t require premium gas, you likely won’t get any added benefits.

“The noticeable difference [between premium and regular gas] is the price. If regular gas is recommended for your vehicle, that’s all you need. Opting for premium [gas] when your car doesn’t require it will only cost you money and doesn’t improve fuel economy,” says Andrew Gross, Public Relations Manager at AAA.

-Don’t drive too fast or be an aggressive driver

When you’re driving on the highway you might consider slowing down, as driving above 50 mph may reduce fuel efficiency. According to a 2013 U.S. government study, you can assume that for every 5 mph you drive above 50 mph, you’re paying an extra $0.30 per gallon of gas than you would if you were driving at 50 mph.

Of course while driving at slower speeds can save you money, it may increase the length of your trip so consider how much longer you’ll spend driving if you’re cruising at 50 mph versus the speed limit on the highway.

Additionally, speeding up quickly and braking suddenly can reduce fuel efficiency. Using cruise control can help improve fuel efficiency.

-Join a gas loyalty program

If you find yourself visiting a specific gas station chain frequently, you might want to join a gas loyalty program to earn rewards on your regular fill-ups. Companies like BP, Shell and ExxonMobil all offer their own rewards programs.

BPme by BP is free to join and users get $0.05 off of every gallon of gas they purchase from a BP gas station within the first month of membership. Afterwards if users spend a minimum of $100 a month at BP they’ll continue to receive $0.05 off per gallon. Users can then redeem their points for things like gift cards, bottles of wine or theme park attractions.

ExxonMobil Rewards+ is also free to join. Users receive $0.03 back for every gallon of gas they purchase at ExxonMobil gas stations and are then able to redeem their points for future gas purchases at ExxonMobil gas stations.

-Use a gas rewards credit card

You might consider using a credit card to finance your gas expenses at the pump. Cards that offer big rewards on gas typically allow you to earn up to 5x points or 5% cash back on gas purchases.

Select ranked the PenFed Platinum Rewards Visa Signature® Card as the best gas reward credit card. The PenFed Platinum Rewards card offers 5X points on gas purchases at the pump and electrical vehicle charging stations and has no annual fee. In order to be a cardholder, you must be a member of the PenFed Credit Union which requires a $5 initial deposit.

The Citi Custom Cash℠ Card is another good choice for people who anticipate spending a lot on their gas purchases. Cardholders don’t have to worry about manually activating spending categories. Instead, Citi will automatically determine your highest spending category (including gas) for the billing cycle and apply 5% cash back on up to $500 worth of purchases in that category. If you’re a big spender on gas, you could earn up to $25 back per billing cycle.

If you’re looking for a card that doesn’t require credit union membership, you could opt for the Blue Cash Preferred® Card from American Express which offers 3% cash back at U.S. gas stations and a $350 statement credit after you spend $3,000 in purchases within the first 6 months.

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